GBPUSD BOUNCES FROM MAJOR SUPPORT

The British pound has rebounded back above the 1.3400 level against the U.S dollar, after finding strong intraday buying demand from its key 200-week moving average, located at the 1.3363 level.

Earlier, the GBPUSD pair declined sharply from its opening price, at 1.3440, as the U.S dollar index soared higher across the board, climbing well above the 93.00 handle.

Today's technical re-test of the GBPUSD pairs 200-week moving average, may have provided the pullback British pound buyers required. If the 1.3363 level now manages to hold, it may signal an important trading low going into the October BOE meeting, where the Bank of England is widely expected to hike interest rates.

Key technical support is now located at 1.3400, 1.3378 and the key 1.3363 level. Should the 1.3363 level become breached, a further decline to 1.3340 and 1.3300 may be seen.

Upside resistance is now seen at 1.3440, 1.3463 and the key 1.3490 level. Above 1.3490, further resistance is seen at 1.3510 and 1.3553.